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Aussie Broadband Ltd.
(Sydney:ABB)
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Rating:65Neutral
Price Target:
AU$5.00
▲(8.93% Upside)
Action:Reiterated
Date:08/26/26
The score is driven primarily by solid and improving financial performance and a positive earnings outlook with strong FY2027 EBITDA guidance and shareholder returns. Offsetting this, the stock screens as expensive on P/E with a low dividend yield, and technicals are weak with the price below key moving averages.
Positive Factors
Strong revenue and earnings growth
Improving revenue, earnings and EBITDA margins indicate stronger operating leverage and execution. If sustained, this trajectory can support durable profitability as the company scales its customer base and integrates acquired operations.
Negative Factors
Persistent competitive pressure on margins
A highly promotional broadband market can limit pricing power and keep customer acquisition costs elevated. Continued pressure on ARPU and gross margin percentage may constrain the conversion of revenue growth into durable earnings and cash flow.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue and earnings growth
Improving revenue, earnings and EBITDA margins indicate stronger operating leverage and execution. If sustained, this trajectory can support durable profitability as the company scales its customer base and integrates acquired operations.
Read all positive factors
Aussie Broadband Ltd. (ABB) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.49B
Dividend Yield1.02%
Average Volume (3M)1.22M
Price to Earnings (P/E)41.3
Beta (1Y)0.99
Revenue Growth9.12%
EPS Growth7.51%
CountryAU
Employees1,703
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.12
Shares Outstanding315,425,050
10 Day Avg. Volume1,354,314
30 Day Avg. Volume1,220,900
Financial Highlights & Ratios
PEG Ratio4.52
Price to Book (P/B)2.03
Price to Sales (P/S)1.12
P/FCF Ratio15.74
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$5.86Price Target Upside27.56% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)0.31
Revenue Forecast (FY)AU$1.60B
Aussie Broadband Ltd. Business Overview & Revenue Model
Company Description
Established in 2008 and based in Morwell, Victoria, Aussie Broadband Limited provides an extensive array of telecommunications services throughout Australia. The company serves both individual consumers and business clients, operating across four ...
How the Company Makes Money
ABB makes money primarily by charging recurring service fees for telecommunications plans and associated services. Its key revenue streams typically include: (1) Retail broadband subscriptions: monthly fees paid by households and small businesses ...
Aussie Broadband Ltd. Earnings Call Summary
Earnings Call Date:Aug 23, 2026
(Q4-2026)
| Next Earnings Date:Feb 22, 2027
Earnings Call Sentiment Positive
The call presents a predominantly positive outlook driven by strong organic growth, meaningful cash generation (operating cash flow +42.5% to AUD 167m), significant scale gains from major migrations and acquisitions (adding ~269k More/Tangerine services and starting AGL migration), and improved profitability (EBITDA margin +1.2pp to 12.8%). Management is investing in long‑term tech modernization and returning capital to shareholders (50% higher dividend and up to AUD 115m buyback). Offsetting risks are clear: margin pressure from competitive pricing and promotions, migration‑related churn and one‑off costs, regulatory impacts (~AUD 3m ACCC voice cost), and that many technology‑driven productivity gains are back‑loaded to FY 2029 and beyond. On balance, the highlights — particularly strong cash flow, market share/connection gains, and clear strategic progress — outweigh the near‑term lowlights.Positive Updates
Strong revenue and earnings growth
Underlying revenue and earnings momentum: company reported 25.8% growth in underlying NPATA and EPSA, a 19.6% increase in underlying EBITDA, and an expansion in EBITDA margin of 1.2 percentage points to 12.8%. Management also cited a 42% uplift in underlying profit after tax and a 26% increase in EPS in the underlying P&L commentary.
Negative Updates
Gross margin pressure and ARPU/mix headwinds
Gross margin percentage eased modestly in FY 2026 due to fierce competition, significant promotional activity and a shift of customers into higher speed tiers (which can reduce percentage margin even as dollar margin rises). Residential gross margin dollars rose 10.2% to AUD 234.7 million, but margin percentage declined after July 2025 pricing changes and front‑book promotions (including AUD 15 promos).
Read all updates
Q4-2026 Updates
Positive
Negative
Strong revenue and earnings growth
Underlying revenue and earnings momentum: company reported 25.8% growth in underlying NPATA and EPSA, a 19.6% increase in underlying EBITDA, and an expansion in EBITDA margin of 1.2 percentage points to 12.8%. Management also cited a 42% uplift in underlying profit after tax and a 26% increase in EPS in the underlying P&L commentary.
Read all positive updates
Company Guidance
Management guided FY2027 underlying EBITDA of A$205–215m (growth of ~24–30% on FY26), saying this reflects a mix of continued organic momentum and the full/part‑year effects of strategic transactions (full year for More, Tangerine and Nexgen; part year for AGL). They expect the AGL migration to be complete in Q2 FY2027, with >1.3m total on‑net connections by then (116k AGL broadband already live and ~269k More/Tangerine added by 30 June), and reported ~11k net broadband adds since 1 July (7k residential excl. AGL). FY26 metrics cited as context include mobile services up 22% to 263k, operating cash flow A$167m, CapEx A$59m (top end of guidance), net leverage 0.9x (new tolerance up to 2.5x), a 50% increase in the ordinary fully‑franked dividend and an on‑market buyback of up to A$115m; management reiterated a FY28 EBITDA margin ambition of 13.5% and said BSS/OSS modernization spend is already factored into FY27 guidance.Aussie Broadband Ltd. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
70
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.30B | 1.19B | 999.75M | 787.95M | 546.94M |
| Gross Profit | 179.18M | 1.19B | 135.19M | 104.93M | 64.52M |
| EBITDA | 175.84M | 139.90M | 113.84M | 98.60M | 35.13M |
| Net Income | 35.28M | 32.84M | 26.38M | 21.72M | 5.32M |
Balance Sheet | |||||
| Total Assets | 1.28B | 1.08B | 1.24B | 693.59M | 628.50M |
| Cash, Cash Equivalents and Short-Term Investments | 125.24M | 130.96M | 214.13M | 76.17M | 48.83M |
| Total Debt | 267.48M | 258.49M | 351.55M | 204.00M | 216.67M |
| Total Liabilities | 572.13M | 536.85M | 667.65M | 401.81M | 359.77M |
| Stockholders Equity | 712.48M | 545.34M | 570.10M | 291.78M | 268.72M |
Cash Flow | |||||
| Free Cash Flow | 91.89M | -8.69M | 28.91M | 67.58M | -4.68M |
| Operating Cash Flow | 121.70M | 68.40M | 120.22M | 116.68M | 37.79M |
| Investing Cash Flow | -103.15M | 18.67M | -247.47M | -46.05M | -308.08M |
| Financing Cash Flow | -23.63M | -170.82M | 266.21M | -43.30M | 261.00M |
Aussie Broadband Ltd. Technical Analysis
Negative
4.59
Price Trends
4.87
Negative
5.10
Negative
5.02
Negative
Market Momentum
<0.01
Positive
39.72
Neutral
45.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ABB, the sentiment is Negative. The current price of 4.59 is below the 20-day moving average (MA) of 4.91, below the 50-day MA of 4.87, and below the 200-day MA of 5.02, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 39.72 is Neutral, neither overbought nor oversold. The STOCH value of 45.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:ABB.
Aussie Broadband Ltd. Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | AU$7.56B | 73.06 | 1.31% | 49.86% | -4.55% | ― | |
65 Neutral | AU$1.49B | 41.31 | 5.50% | 1.04% | 9.12% | 7.51% | |
64 Neutral | AU$1.53B | 87.98 | 3.49% | ― | 21.56% | 1694.74% | |
62 Neutral | AU$1.53B | 61.95 | 5.01% | ― | 3.78% | -9.98% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | AU$52.48B | 23.76 | 17.30% | 4.01% | -0.81% | 5.46% | |
37 Underperform | AU$10.40M | -3.53 | -14.37% | ― | 8.86% | 58.02% |
* Communication Services Sector Average
AU:ABB
Aussie Broadband Ltd.
4.69
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Aussie Broadband Ltd. Corporate Events
Aussie Broadband Updates Director Equity Holdings Under Fee Sacrifice Plan
Aug 26, 2026
Aussie Broadband has reported a change in the interests of non-executive director Sarah Adam-Gedge, reflecting movements under the company’s director remuneration arrangements. She converted 5,043 FY26 non-executive director (NED) rights int...
Aussie Broadband Updates Director Susan Klose’s Equity Holdings
Aug 26, 2026
Aussie Broadband has disclosed a change in director Susan Klose’s holdings, following the conversion of non-executive director (NED) rights into ordinary shares and the issuance of new FY27 NED Rights. Klose’s 6,304 FY26 NED Rights wer...
Aussie Broadband Issues New NED Rights Under Equity Scheme
Aug 26, 2026
Aussie Broadband Limited has notified the market of the issue of 31,616 unquoted securities classified as NED Rights, effective August 26, 2026. These rights relate to non‑executive directors and form part of the company’s equity‑...
Aussie Broadband Adjusts Capital Structure with Cessation of NED Rights
Aug 26, 2026
Aussie Broadband Limited has notified the market of the cessation of a specific class of securities, identified as NED Rights, with 17,651 of these instruments now terminated. The change, lodged with the ASX as a new Appendix 3H announcement dated...
Aussie Broadband Declares Interim Dividend of 3.6 Cents a Share
Aug 23, 2026
Aussie Broadband Limited has declared a fully paid ordinary share dividend of AUD 0.036 per share for the six-month period ending 30 June 2026. The dividend will trade ex-dividend on 4 September 2026, with a record date of 7 September and payment ...
Aussie Broadband’s 2026 Results Framed by Strong First Nations Acknowledgement
Aug 23, 2026
Aussie Broadband has released its 2026 full-year results announcement, dated 24 August 2026 and listed under the ASX ticker ABB, underscoring its status as a publicly traded telecommunications company. The release is framed by a prominent acknowle...
Aussie Broadband lifts revenue, profit and dividends as it reshapes portfolio
Aug 23, 2026
Aussie Broadband Limited reported a 9% rise in revenue to $1.30 billion for the year ended 30 June 2026, while net profit after tax attributable to members increased 7% to $35.3 million. The company expanded its share base to more than 315 million...
Aussie Broadband to Release Escrowed Shares from More Telecom Deal
Aug 17, 2026
Aussie Broadband Limited has advised that 2,938,472 ordinary shares will be released from voluntary escrow on 26 August 2026, 12 months after their issue as part of consideration for a Wholesale Services Agreement with More Telecom Pty Ltd. These ...
Aussie Broadband Sets FY26 Results Release and Investor Briefing
Jul 29, 2026
Aussie Broadband Limited, an Australian telecommunications group listed on the ASX, operates the Aussie Broadband, Symbio, and Nexgen brands, delivering more than one million broadband, mobile, and voice services nationwide. The company owns fibre...
State Street Group Ceases to Be Substantial Holder in Aussie Broadband
Jun 23, 2026
State Street Corporation and several of its global asset management subsidiaries have lodged a notice indicating they have ceased to be a substantial holder in Aussie Broadband Ltd as of 19 June 2026. The filing, made under Australia’s Corpo...
Aussie Broadband Issues New Unquoted Options Under Employee Incentive Plan
Jun 9, 2026
Aussie Broadband Ltd., an Australian telecommunications and internet services provider listed on the ASX, focuses on delivering broadband and connectivity solutions to residential and business customers nationwide. The company operates in a compet...
Aussie Broadband Issues New Unquoted Options Under Employee Incentive Scheme
May 27, 2026
Aussie Broadband Limited has notified the market of the issue of new unquoted equity securities under its employee incentive scheme, including options expiring in 2030 and a new class of options expiring in 2031 with no exercise price. The move ex...
Aussie Broadband Updates Market on Director Michael Omeros’s Equity Interests
May 27, 2026
Aussie Broadband has updated the market on a change in director Michael Omeros’s interests, largely reflecting an issue of additional zero exercise price options (ZEPOs) under the company’s long-term incentive plan. The new FY25 and FY...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.